Source: Slonim Consulting
Saving money almost always seems to be more difficult than spending it; however, there are times when the end result of saving brings more joy than those un-required purchases which were made on impulse.
People save money with the objective of meeting a variety of goals; for some the goal involves going on holiday while for some others it involves setting aside a particular amount each month for charity. The reasons are innumerable, however the tips presented here will allow everyone to save, and therefore benefit from and enjoy their savings.
Here are some simple tips which you could incorporate in order to begin your saving plan:
- List out your reasons for saving
- Decide on a set amount which you will save within a certain period
- Endeavor to avoid digressing from your plan
- If you are saving a large amount of money, open a savings account for the purpose
- Track your savings with the help of charts and graphs
Source: Personal Capital
Understanding what you are saving for will enable you to decide on the most important aspect of saving, i.e. the fixed amount of money which you will be setting aside each month. This amount may vary in the event that you earn variable income, in which case it is a good idea to decide on a bare minimum which must be set aside regardless.
Once you have decided on the amount you will be saving per month, it is time to set up a structure through which you can track the progress of your savings. This is important as it will enable you to hold yourself accountable in the event of an unfortunate lapse, and will enable you to see how close you are to meeting your goal.
If you’re saving with the intention of making a large investment or purchase, it is a good idea to open a savings account for this specific purpose. By doing so you are removing the temptation to stray from your plan, and will be less likely to spend your hard earned savings on impulse purchases.
Technology comes in handy when it comes to staying motivated, and a number of programs and mobile applications exist which will enable you to remain cognizant of your savings plan. You could also keep a savings notebook in which regular updates can be shared pertaining to the monthly amount invested and the total amount of savings you have in hand. There are simple savings plans such as the ones found here that you can tailor for yourself and you can also use a chart like this one to track your savings.
One of the primary barriers to saving effectively involves being tempted to spend the money which you have saved with such dedication. Continue to motivate yourself to avoid giving into temptation by keeping your end-goal in mind. It must be important enough for you to have created an entire financial plan around it.
The end goal of any kind of saving plan is always well-earned. Whether you are saving for college, a new car, an apartment, or even your wedding, be sure to use the tips shared in order to succeed at saving.